Professional Documents
Culture Documents
Starting A Business
Partnership
A partnership is the relationship between two or more persons or companies that carry on a trade or business together. In the absence of a partnership agreement, the NYS Partnership Law sets forth the rights and duties of the partners. Form: Certificate of Conducting Business as Partners. Purchase this form from a legal stationery store in New York, through Blumberg Forms at 800529-6278, or through their website at www.blumberglegalforms.com. Complete and notarize the form, then file it with the county clerk in each county where the business is located. You usually need three copies: the original for the county clerk, one for the bank to open an account, and one for the business. Fees: $25 plus $4-$5 for each certified copy. (The filing fee in the five counties within New York City is $100; certified copies are $10.) Limited Partnership: A limited partnership consists of one or more general partners with unlimited liability for all obligations incurred by the partnership and one or more limited partners whose liability is limited to the extent of his or her capital contribution. Form: Certificate of Limited Partnership filed with the NYS Department of State, Division of Corporations. NOTE: Limited partnerships must publish a notice in two newspapers in the county where the business is located each week for six successive weeks specifying the details of the limited partnership within 120 days after filing. Fees: $200. (See Corporations for contact information.)
Personal Business Permit Assistance: Toll Free: 800-342-3464 Local: 518-474-8275 Fax: 518-486-5869
Issued January 2011
Local Permits
A person contemplating starting a business should be aware of local laws. It is important to contact the village, town, or city and county clerk where the business plans to locate. Examples of local considerations are zoning, parking, sign regulations, and certain occupational licenses such as auctioneers, electricians, and plumbers. It is advisable to contact your local government first.
Business Structures
The most common forms of business structures are: sole proprietor, partnership, limited liability company, and corporation. If you plan to conduct business under a name other than your own, you must register the name. Keep in mind that registration is NOT permission to conduct business. The following contains a brief outline of the most common business structures.
may report income on personal tax returns. Individual shareholders who wish to obtain this option must file federal Form 2553. Once the Internal Revenue Service grants approval, you must file Election Form CT-6 with the NYS Department of Taxation and Finance. Not-for-Profit Corporation: Not-for-Profit corporations cannot distribute assets, income, and profits to the benefit of the members, directors, or officers except to the extent permitted by statute. The filing fee is $75 with the NYS Department of State. You must obtain non-profit status approval from the Internal Revenue Service before requesting approval from the NYS Department of Taxation and Finance. Foreign Corporation: The NYS Department of State authorizes an out-of-state corporation to conduct business in New York. The basic filing fee is $225 and a certificate of existence or good standing is always required from the jurisdiction that originally organized the corporation. Contact Information: NYS Department of State, Division of Corporations 518-473-2492 www.dos.state.ny.us
W. Averill Harriman Campus, Albany, NY 12227 Forms: 800-462-8100 or 518-485-2889 Information: 800-972-1233 or 518-485-2889 www.nystax.gov Federal: For federal tax requirements, contact the Internal Revenue Service for The Small Business Resource Guide. This guide contains general information on federal tax obligations such as estimated taxes and self-employment tax, as well as various publications for starting a business. Refer to the Federal (Employer) Identification Number section for contact information.
New York State requires all employers to provide: Unemployment, Workers Compensation, and Disability Benefits insurances as well as comply with wage reporting and withholding tax requirements. The NYS Department of Taxation and Finances Publication NYS-50, Employers Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax, explains NYS tax responsibilities as an employer. Unemployment Insurance: An employer who begins hiring employees to work in New York is required to notify the NYS Department of Labor promptly to determine their appropriate tax status. The conditions for liability differ among not-forprofits, government, household/domestic, agricultural, and all other employees. Contact Information: NYS Department of Labor Unemployment Insurance Division State Campus, Building 12, Albany, NY 12240 518-457-4179 or 1-888-899-8810 www.labor.state.ny.us To apply online: www.nys-opal.com Workers' Compensation Insurance: Provides protection to the employer from liability in the event of an on-the-job injury resulting in employee disability or death and to provide monetary relief and medical benefits to the injured worker. This insurance is available through the NYS Insurance Fund at 888-875-5790, through their website at www.nysif.com, or through a private insurance carrier. NOTE: Workers' Compensation is also available to sole proprietors or partners who have no employees. Disability Benefits Insurance: Provides for the payment of cash benefits to employees who become disabled because of injuries or sickness that have no connection to their employment, and for disabilities arising from pregnancies. Employers and employees may pay for this insurance jointly or solely by the employer. This insurance is available through the NYS Insurance Fund at 866-697-4332, through their website at www.nysif.com, or through a private insurance carrier.
Employer Responsibilities
The Federal government requires all employers to have their employees fill out Form I-9 and Form W-4. Federal employment taxes required are: Federal Income Tax Withholding, Social Security and Medicare Taxes (FICA), and Federal Unemployment Tax (FUTA). The IRS Publication 15, Circular E, Employers Tax Guide, explains Federal tax responsibilities as an employer. Form I-9, Employment Eligibility Verification, obtain this form from the U.S. Citizenship and Immigration Services at 1-888-464-4218 or www.uscis.gov. Form W-4, Employees Withholding Allowance Certificate, obtain this form from the Internal Revenue Service. Call FORMS/PUBLICATIONS: